Corporates upbeat on Modi's US visit, expect tangible outcomes

New Delhi: India Inc is optimistic about Prime Minister Narendra Modi's upcoming US visit, with 77 percent of corporates eyeing tangible outcomes from meetings with President Barack Obama and a boost to bilateral trade from current level of USD 150 billion, says an Assocham survey.

The survey covered 261 corporate heads and was conducted in the second-third week of September, ahead of the visit.

"With US accounting for over 60 per cent of India's software exports of USD 100 billion and the merchandise exports and imports totaling about USD 62 billion, along with the two-way foreign direct investment and the portfolio, the India-US annual commercial engagement is well above USD 150 billion.

"With these cumulative figures, the US is India's largest economic partner holding a greater potential for further scale-up," the industry body said.

Moreover as many as 67 percent of the respondents in the Assocham survey said they would expect the Obama-Modi personal chemistry to be a high point of the forthcoming visit.

"In fact, India Inc expects this very chemistry to then reflect on a whole range of issues which confront the India-US economic engagement, be it divergent views in WTO, issues on visas for IT professionals, non-tariff barriers from the Indian side or national treatment demand by the US on solar equipment in India or opening of the retail and financial sector," Assocham Secretary General D S Rawat said.

Rawat further said the way Modi has gone about building bridges with the Chinese President Xi Jinping and a personal chemistry with the Japanese Prime Minister Shinzo Abe clearly points to his capabilities for striking a similar friendship with President Obama.

Between China and Japan, the Prime Minister has already received commitment of investment of USD 55 billion from them, he added.

On whether Modi's interaction with business leaders in US and other policy-influencing people will register a new imprint about India's investment climate, an overwhelming 82 percent of CEOs and corporate leaders in India said the perception has already changed for better and Modi's personal interaction with them will further improve the perception.

Rawat said the industry expects that the government will deliver on the Prime Minister's promise in Japan that a red carpet treatment will be extended to investors instead of red tape.

The Prime Minister will be on a five-day visit, beginning September 26, to US during which he will address the UN General Assembly in New York and then travel to Washington where he would hold bilateral talks with US President Barack Obama.